"I am profoundly grateful to the President and to the attorney general for selecting me to serve in the Department of Justice. I have reluctantly concluded, however, that, for me and my family, this is not the right time for me to leave the private sector and take on a new role in the federal government," he said in a statement.

"Kellyanne and I continue to support the President and his administration, and I look forward to doing so in whatever way I can from outside the government," he added.

One source close to the situation said the decision was made out of family considerations.

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A different source said Conway is not in play for a position on the President's legal team.